GOP playing tug-of-war on Obama plan

Minutes after Barack Obama delivered his big economic speech Thursday, the top two Republicans on Capitol Hill popped in front of the TV cameras to say they were ready to work with the president-elect.

Some other members may not be so cooperative.

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“There are ways to stimulate the economy. This isn’t one of them,” said Georgia Rep. Tom Price, the incoming chairman of the conservative Republican Study Committee.

Obama’s plan is expected to cost at least $775 billion, and Price and other conservative House Republicans are prepared to argue that “this is, at its fundamental base, money that we don't have.”

Congressional Budget Office estimated this week that the nation’s deficit will double, to $1.2 trillion, in 2009 — and that’s before the cost of the stimulus package is added in.

Obama acknowledged Thursday that his stimulus plan “will certainly add to the budget deficit in the short term.”

“But equally certain,” he said, “are the consequences of doing too little or nothing at all, for that will lead to an even greater deficit of jobs, incomes and confidence in our economy.”

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Obama has tried to assure Republican support for the spending in his plan by tying it to $300-plus billion in tax cuts. But as much as those may appeal to the GOP, Price calls the rest of the bill — hundreds of billions in spending for conservation projects, unemployment benefits and state aid to fund road projects and bridge Medicaid shortfalls — a “non-stimulus package.”

House Minority Leader John A. Boehner (R-Ohio) and Senate Minority Leader Mitch McConnell (R-Ky.) both say they’re open to working with the incoming president — and vice versa. In addition, Boehner has made it very clear to his rank-and-file that Republicans will suffer if they become “The Party of No” by staging frequent fights with the popular president-elect.

“I do believe our economy is facing crisis,” Boehner told reporters on Thursday. “I do believe that Washington has to act.”

But neither leader wants to swallow principle in supporting the package. And if complaints from the rank and file grow loud enough, Boehner and McConnell may find themselves trapped between their need to represent their members and their desire to appear supportive of the new president — and understanding of the economic troubles facing many Americans.

Many of Boehner’s members abandoned him during negotiations over the $700 billion Wall Street bailout in the fall, and that frustration still remains.

So far, it’s not clear how outspoken Republicans intend to be. With Senate Democrats launching their own criticisms of the Obama plan, the Republicans have been able to fly under the radar while working on their own responses.

On Wednesday, at the House Republicans first conference-wide meeting of the year, Pence, a former RSC chairman, delivered a Power Point presentation outlining a series of conservative complaints with the massive economic stimulus bill, members present at the meeting told Politico.

Boehner has tasked his new No. 2, Minority Whip Eric Cantor (R-Va.), to organize a task force to plot the party’s negotiating strategy with the incoming president and his team.

The group met for the first time Thursday night in Cantor’s suite on the third floor of the Capitol. A participant said that members present threw out a slew of ideas in a rapid-fire exchange during the meeting but did not reach any agreements.

Republican Party leaders retire to Annapolis, Md., this weekend to chart their course for the rest of the year.

Boehner and McConnell both signaled that their support for Obama’s plan hangs on whether he offers Congress “the right balance” between new spending and tax cuts. And, despite a suggestion otherwise from Boehner on Wednesday, the overall cost will be an issue.

“How much debt are we going to pile on future generations?” Boehner asked on Thursday.